5-7-9 % Loans
The program provides for simplification of access of enterprises to bank lending - namely, the opportunity to receive a loan at a reduced interest rate through state compensation of interest rates to the level of 5%, 7% and 9% per annum for loans in national currency.
Pivdenny Bank is an Authorized Bank of the Entrepreneurship Development Fund for participation in the State Program "Affordable Loans 5-7-9%”. The program is implemented with the support of the President and the Government of Ukraine.
Program objectives
- Investment
- Replenishment of working capital
Terms and Conditions
- Legal entities and individual entrepreneurs (Ukrainian residents)
- Borrower and ultimate beneficial owner – Ukrainian residents
- Term of duration: 12 months or more.
- Total government assistance for businesses within the framework of any grant programme during the three-year period must not exceed the equivalent of €200,000 (aggregate sum for an affiliated group)
- Compensatory interest rate (client’s rate) depending on the funding objective, annual operating income and the number of employees hired
- Business entity involved in agricultural production must be filed with the State Agrarian Register
- Business entity engaged in agricultural business (main NACE) according to all NACE codes of Section A and in agricultural processing (main NACE) according to all NACE codes of Groups 10.51, 10.61 and 10.71 of the National Classifier of Ukraine must introduce and consistently be in compliance with the World Bank Environmental and Social Standards.
- A business entity free from any limitations on government assistance under Article 13 of the Law of Ukraine “On Development and State Support of Small and Medium-Sized Businesses”
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Targets |
Investment goals |
Funding of working capital |
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Annual interest rate (for the client) |
7%* |
9%** |
13% (except for business entities with the annual income exceeding the equivalent of €20 million) |
15% (business entities with the annual income exceeding the equivalent of €20 million) |
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For business entities involved in agricultural production for the agricultural sector |
7%* |
9%** |
13% (except for business entities with the annual income exceeding the equivalent of €20 million) |
15% (business entities with the annual income exceeding the equivalent of €20 million) |
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For business entities doing business in warlike high-risk areas |
annual rate of 1% during the first 2 years of funding, later annual rate of 5% |
3% |
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Interest rate by priority areas: |
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For business entities engaged in processing business according to all NACE codes of Section C and all classes of the Group 01.4 NACE of Section A of the National Classifier of Ukraine |
7%* |
9%** |
7% |
9% |
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For business entities requiring the rebuilding of the destroyed business and production facilities damaged as a result of the Russian military operations |
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For business entities engaging in power supply service activities aimed at enhancing energy efficiency of public and municipal property. |
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Borrower’s annual income |
< €10 million |
€10-50 million |
< €10 million |
€10-50 million |
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* with an option to lower the annual interest rate to 5% (if the company additionally hires two new employees); quarterly interest rate adjustment
** with an option to lower the annual interest rate for 0.5% per new additional employee (but the final interest rate must not be lower than 7%); quarterly interest rate adjustment